tv [untitled] March 3, 2011 1:00pm-1:30pm PST
include the south of market area san francisco, mission bay, and we believe ultimately, appear 70. we believe there continues to be silicon valley's premier owner of silicon valley spy technology companies that need to follow those technology companies migrating north and really p seeier 70 has a unique opportunity to develop property and sell these to their needs. most importantly, we chose to partner with tmg because we recognized together we provided a complementary skills that and the range of experience and expertise required to successfully develop this project. tmg bring their experience not only within the san francisco area but also with public private large-scale brownfield redevelopments. we believe that is very complementary and synergistic with our large, high tech tenant base, our technology development experience and our deep
financial resources and relationships. >> the rfq part of the story is basically the summary. between the two companies, we have been doing this for a combined 60 years. we have done more office development than it is safe to say our competitors, but as he relates to this area. the bay area is home. it is where we do our work. where we have been successful. the financial strength of the sobrato organization, combine with our development background, as john said, is unparalleled. when you look at the commitment of the two organizations to the bay area in general, it goes much broader than real-estate. it includes social organizations and the like. we feel those are good resumes. as it relates to pier 70, we
did the hamilton air field in cameron, which include all of the elements that this project includes. it had the clean-up of the sites, cleanup of commercial space, residential space, hotel space, retail, as well as a fairly of the corridor to get to the developable land i think one of the thoughts that we had, and simon mentioned it, we would love to figure out a way to have the first part of this project include the historic and new ground up part of it. we think the front door of this project is critical. we have the capacity and desire to do both. we would like the to consider that as an option. at the end of the day, uses, as i said it earlier, in emeryville, and development that got a lead putnam award, has a lead market, theaters, restaurants, a mixed use, that this site deserves.
in san francisco, we have done theaters and restaurants, again, combined with historic buildings, such as 1000 van ness. at the end of the day, the trick to this will be the financial commitment to getting this thing approved through the different agencies, designed properly and ultimately to poke a tenant from the bay area or san francisco. we have done deals with sales z forcesales zynga, microsoft, and the like, but this will appeal to the whole bay area. which is why we feel the sobrato partnering was a fabulous opportunity for us, for the city, and ports. with that, we are very excited about this project. this is sort of a culmination of what we do. pier 70 would be a highlight of our company and the sobrato organization as well. thank you for your time.
thank you. all but three seconds. >> port city is next. i think this is what you walkew. >> good afternoon and thank you for giving us the opportunity to present today. my name is kevin rattner, the president of ford city development. this represents a large part of our portfolio developed over 30- plus years and we continue to see great opportunity to invest here in san francisco. pier 70 represents one of the
few cartoon is in the country to develop a unique place over time and in a dynamic city. we do not find many opportunities like this, and when we do, we go after them. i would like you to introduce you to my uncle, board member and president of our residential group. he is excited about pier 70, represents the level of excitement we have for the project, and is an example of the activity that we've engaged in in the area. i would now like to introduce alexis, who was at the forefront of the planning of this project. >> good afternoon, commissioners. this presentation is really to get you familiarity with forward city, locally and nationwide. force city is a $12 billion company. is public. we pop -- focus primarily on urban development and transit oriented, so this is the type of project we are attuned to.
we have a great combination of national brent and local debt. we have been incentives " for 30 years, -- san francisco for 30 years. about 800 units. that has progressed to a few projects that i will show you shortly. we also have an incredible history of nationwide doing complex, public-private partnerships, projects that take multi phases, and have a lot of variables to them to balance. i will also take you through those. i want to hit home with a few things that you should take away from us. along with the numbers that are on the screen here. which is really our commitment to active partnerships within the community and public partner, understanding what that means. what that means in an urban context, and in the financial capacity, we are the ones investing in equity and
component. we are self funding which gives us the flexibility and a long- term commitment that is different from other structures. we are also not cookie cutter. we realize every urban area has different context and it is about understanding both, pulling from the national resources of how public-private partnerships are structured, financing mechanism there are, but then likewise, understanding the local market and how to hit that tone of what this should be in a given context. that is what we focus on. let me bring you to the projects. mit university, they were originally going to be incubator space. the light side industry emerged in the project and we read more into the master plan. it ended up being over 2 million square feet. we also have everything from the entitlements, development, to oversee construction, to operating. we still pay ground rent to mit.
last year, they got $20 million for their participation. so it has been an incredible success of an internationally- renowned life science center. metro tech in new york, 3000 square feet of office in downtown brooklyn. the city of new york, pa sea-tac institute came to us and said that they want to create job growth in the middle of brooklyn. effectively, this project created downtown brooklyn and offered that. stapleton, 4,700 acres of infill development that is the former denver airport. obviously, a tremendous amount of issues related to brownfield, financing structures used throughout this project. there is also an incredibly sustainable model behind that, with 1000 square feet of open space. our next project actually hold a
lot of similarities to pier 70. the yards, the tsa came to us to figure out what we could do with this 42 acres that was a former navy yard. there is a working in the yard next to it. a lot of the same issues of how to fit into historic context, how do i bring the waterfront back to the community? we built out the public parks first and have traded access that was not there before to the public. we are now in the midst of creating some of the historic buildings into residential and office combines. in terms of local experience, around the corner, of course, is the san francisco center. we entitled that project and developed it and brought on westfield after the entitlements were secured as a partner, operating partner. that is a local project -- obviously, we went through the entitlement process there. the presidio, the presidio large
historic building rehab. that was financed in the worst of times, but a testament to force city possibility to gain financing, even in bad economies because of our 90-year history of strength. it is also an example of the local-private partnership, which is when and where the presidio had multiple goals they had to contend with. how do they achieve the highest level of sustainability, open up access to the parks to the surrounding neighborhoods, create an economically viable project for themselves that could help revive the 42 acres that this district is within, etcetera, obviously, historic issues involved. so there is an historic and revitalization component to it. the fivem project is an emerging project. hearst corp. came to us. this is where chronicle is located. it is where they used to do
their printing. obviously, they have now taken a smaller footprint that things have evolved. their challenge, how do we make this the next media technology campus and involve where the markets are going? we took a different approach to 5m, and did user research process and used some and ecological study around innovation. what makes san francisco unique in how it provides for an innovative environment, both culturally and also in terms of the amount of start-ups that come out of san francisco, why that is happening -- large companies in the ,too, and understanding the dynamics behind that. that helped us to place tenants into the next generation in how you think about the innovation campus. we use the existing states in a founder of the economy to populate the vacant buildings with those tenants. it was incredibly successful from a market perspective, from a community building perspective, showed our ability
to partner with much smaller organizations that grow program and communities in different ways, including standards is good digital film school, intersection for the arts, and others, which it all has a feeling of all entrepreneurialship, making it to the center. it surprised us the amount of demand coming from it. we were approached by many larger companies saying, how can i look it there? we could not fulfil the demand so we started to crack down on how we think we could in the bay area. how we look at pier 70. clearly, pier 70 does not want to be a google office park located in the city. that is not the highest value of it. we know the highest value for companies is their ability to be interdisciplinary, intersect with one another, for a gaming company to be next to a biotech company to share that knowledge. that is what is great about this
city. when we look at what pier 70 is and what has happened already, the history of muni, in this area, it is clear this is a phenomenal center point of that, which is what we want to advance and worker with the port as your partner. so going forward, is really the representation of the steps forward of how we think of a place as a place in the evolution, in context. we clearly have incredibly deep history that we can draw upon for all the issues that we are confronted with at this site. this is all about how we can create a partnership that will maximize the value, financially, culturally, and socially, and creates a place that is magnetic to the people that live around it, about creating
creativity, an understanding with the new industry is. and as a magnet also, as a follow on for the larger tenants who need to learn how to innovate, to learn to be around this environment, and to need to be around this in mind to succeed. thank you for your time. >> mission bay development group is next. >> president, commissioners, executive director, thank you for the opportunity to present our qualifications for working on pier 70. i am the managing principal with mission bay development group, the master developer for mission
bay, the 303-acre redevelopment north of pier 70. we are a certified lbe and we are the lead of the development team. we are working in partnership with our prep -- capital partner, cherokee. they are a private equity investment firm that manages multiple realistic private equity funds and focuses on brownfield redevelopment and specializes in redevelopment. we have built a core team of advisers that is kicked off with perkins and will. you have come across them before in much of your dealings, including with the building we are in today, and specific to our experience, and their principles helped create a master plan and design guidelines for mission bay. hargreaves and associates. landscape architecture and open space is a key ingredient to what the public experiences of what is going to be billed at
pier 70. we have experience with them, we are building a water park just north of pier 70. finally, a famous san francisco bay construction firm focused on historic rehabilitation and buildings along the port's ownership, along with buildings in the mission bay area. so you hear a consistent theme, mission bay. what is important here is we are not just a san francisco firm. we are a local, local firm. we have a commitment to the central waterfront. each of our members is invested in this part of the city. four of us are all of the waterfront, three of us are headquartered. this is a longstanding commitment that existed far before sales force came along and make a big splash. it is a belief that we have had for a long time, and we voted with our feed and investment
dollars. we have been waiting for the opportunity to see the next that take place, which is pier 70, and we are excited about it, and we want to be your partner. this is the opportunity we believe would come for a long time. that is what you want to work on pier 70. i can sit here and try to summarize a detailed rfq where our design team came up with an amazing plan, but the reality is, that groundwork was already late for us by the park commission. the community as well. they work together for a long time to envision what the site should be about. instead of spending my time telling you our refinements to that, i want to talk about what is different about our part -- approach. we are a master developer. we coordinate these large-scale data to projects, entitlement, planning, infrastructure development, and then both build out and selection of other developers to help execute and
make the project happen. what that has is a multiple of it -- multitude of advantages. when you have a master developer engaged, you get a diversification. it is not just us building buildings. it is other developers building as well. each of them brings their resources in terms of private investment, multiple private investors. it brings their contacts in terms of tenants and users. so you bring all that to bear, and that is why you see what is happening at mission bay happen, because we are not being selfish about it. we do not have to be the only builder there. probably better yet, a variety of specialists, each in a special building type, building out these projects. that is what will be the most ever source of revenue for the port. but the reality is, those buildings are not actually what the community experiences. what the community experiences is the experience of the place itself. as a master developer, by
handing off some of the vertical development task, we spend more time focusing on what that experience is about, what are the connections on the sidewalks, streets, bike paths come out to the amazing open space? how you integrate them back into the community? we get that what development is about, from the city's standpoint, community's standpoint, is what you experience on the ground floor level. our attention is freedom to make sure those community benefits exist, and the experience that you have at pier 70 is a special place. we also get we are in a partnership. that means the benefits, economic, resource-wise, need to be experienced at every stage of development. they cannot just be about what we make at each stage of the development. the question needs to be, what
backbone is in place to help support the rest of pier 70 development? we want to be a part of that development, as a master planner, to help make sure that what gets done at the waterfront site is complementary and additive to what has happened. we also want to make sure that there is real, tangible benefit to the port. the economic deal that gets cut here is one that generates the highest level of revenue. which means you can bring in developers at a later stage of development. you work with a master planner like us, and then cut individual deals with the developers. that is upside that can be delivered by teaming with a master developer. one of the biggest community balance that exists is the generation and creation of jobs. with development, pier 70 used to be an incredible source of employment for the city.
it can again become that, first with construction jobs, and as an lbe, we understand construction jobs reach out to the community. when we had mission bay, frankly, we had a horrible track record of getting engagement from local firms. we changed our entire contract in strategy to make sure that but there are opportunities for local firms, minority-owned firms, women-owned firms, and that strategy took us all the way up to 40%. and it is not just about the firm's, but who they are hiring. when san francisco residents do not have the opportunity to work, the full benefit is not experienced. at mission bay, we have gotten 85% participation in terms of women and minority-owned in plymouth, local hiring levels near 40%. the job generation does not stop just that construction. it also goes into the vertical
development out here, and it is about getting the businesses that we have already been interfacing at mission bay, who are already circling, where can i relocate? bringing those relationships to bear on this development. but it is unique. it cannot be. it is a totally different place. part of what we bring to the table is financial strength. financial strength not just in our capital partner, cherokee, who manages $2 billion, and has millions available for these types of projects today, but about the financial strength of our team. i worked for 13 years in the investment and lending sector. i understand what it takes to bring capital to a project, how investors think. with that knowledge, we can figure out what are the areas we need to remove to help make the products succeed. we also have the experience of having done $270 million worth of public financing to help
facilitate infrastructure, parks, and open space, and it is that understanding of the public market that will be critical to making pier 70 work. and finally, we have experience in soliciting state and federal funding. at the end of the day, to survive these economic cycles, you have to be able to tap into all sources. that is something we have done at mission bay. we get this is a long-term partnership. if you look at how long mission bay has been going on, we have been involved in the central waterfront effort from day one. you cannot lose interest. i recently heard sales force landed. this is an interesting project to jump on. this is something you have to be committed to. it is not always clear through the down cycle that things will work out. at the end of the day, that is what partners to. they commit for the project, they are there for the duration,
they have experience with staff, over 10 years with the san francisco redevelopment agency, the city of alameda. these are the kinds of things that you look for in a partner. we can bring those experiences from mission bay to bear here. pier 70 is not mission bay. they both strive to deliver jobs, for open space for the public, but pier 70 has an incredibly rich historic fabric that needs to be celebrated. where the comparison is relevant is this. they are right next to each other. we have been here. we get it. this is what we can bring to bear. seven waterfront sites worth of experience. thank you.
>> commissioners, i wanted to generally recap where we are. this is so exciting to have multiple responses to the solicitation. much more fun than the last one i did. the reason we are here is, we, the port, did what -- 16 commission hearings on the master plan, 60 community workshops. we did this master plan work where we essentially laid the table and in the hard choices of how many acres per ship repair, parks, what is for land, what our party historic buildings? we realize the right way to get a developer partner was to say, we want to do this, so why are you the right partner? why is your experience, your checkbook the one that can help us to this?
that is what we have. the ranking and evaluation of the technical panel, with the financial capacity check is to test that, to see. we are not ready yet to talk about what the pier 70 will be in terms of an eir product description. we would choose this partner, negotiate an agreement, and over time, working with the community, commission's direction, refine those parts of it and create certainty for the developer, for the public, and get us to something that can be achieved and built. just a little bit about the historic building request of its end. we know it will take us probably until the end of the year to -- whoever we choose -- to get engaged. starting to look at the process of if there is somebody out there that would like to be in one of those buildings, breathe
life into that. we can get that going in vain they can work with this developer and with the whole framework. we really want to accelerate the interest and investment in historic buildings. any questions? is there any public comment on this item? that is a first. i guess everybody did such a great job. >> i would just like to thank all of you for coming today. it is very affirming for all of us to have such an array of distinguished and experienced firms with your portfolio's express interest in this project. we look forward to working with some of you down the road. >> bilditto. >> we are fortunate to have all of you here wanting to work with the port. going forward, i am looking
forward to our march 22 commission meeting to see where this all leads. so thank you very much. we appreciate you coming out. >> item 11. new business. >> is there any public comment on new business? >> item 12. public comment. >> is there any public comment? >> we have a motion to adjourn. >> second. >> all in favor? meeting adjourned at 4:00 0 p.m5 p.5 p.m.